Hiring Your First Employees

Anni Sofferet
*Note: This was written by a Yahoo! contributor. Do you have a small business story that you'd like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.

If you want something done, do it yourself. Right? Wrong!

If you want your business to grow, you have to hire employees. But hiring your first employees is a huge responsibility. What if your employee steals from you? What if she sues you for discrimination? What if something goes wrong and you don't have the money to pay for your employee's wages at the end of the month?

When I hired my first employee for my first small business, I didn't sleep for a week. It was a flower selling business, and I neglected my routes to shadow my employee and make sure she was doing fine on hers. In the end, she was a success that week, but my customers were fuming. I learned the hard way that hiring a good employee requires good selection beforehand and trust afterward.

First, the job description you write in the employment advertisement has to be super accurate. Don't try to paint a rosy picture of your business to make yourself look good. State things as they are. If there's a tedious side to the job (like arranging flowers from 4:00 to 6:00 in the morning) outline it clearly.

Second, say what makes your business uniquely qualified to succeed. This will hopefully attract a person who will be as passionate as you, someone who will be willing to invest in helping the business grow to its greater potential.

Third, offer only what you can afford to pay, even if it's minimum wage. But also offer additional benefits that make up for the lower pay. For example, you can promise a future raise based on business growth, or you can offer more flexible hours, like starting the work day earlier to end it earlier, or working through lunch for the same purpose. Alternatively, add more paid vacation days, or offer group discounts to pre-paid legal plans, medical care or similar benefits.

Fourth and most importantly, create a relaxed, friendly work environment that reflects your passion for your business. This will make hiring your first employees much easier. As you interview potential candidates, look for someone who responds to your work setting and the business goals you are trying to achieve.

Finally, before you can hire your fist employee you will need to obtain an employment identification number (EIN) for tax purposes. You can learn the simple steps at the U.S. Small Business Administration Website.

More from this contributor:

6 Tips for Landing Your Dream Job

Should Small Businesses Accept Credit Cards?

My Quick Credit Score Fixes

Published by Anni Sofferet - Featured Contributor in Business & Finance

Anni is a full-time freelance writer and owner, creator and designer of InventiveHomeImprovement.com, RationalSelfDefense.com, and MyMoneyLifeLessons.com. Her accomplishments on YCN include the Rising Star A...  View profile

1 Comments

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  • Delicia Powers5/4/2011

    Thanks Tal!

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